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MjLink Cannabis Business News and Press

Cannabis Industry Business Professionals Blogs, Press Releases and News Articles from the best journalist in the industry. Stay updated on all news from many online cannabis news outlets, on MjLink.com
Cannabis Business Times is owned by GIE Media, based in Valley View, Ohio. CBT’s mission is to help accelerate the success of legal cannabis cultivators by providing actionable intelligence in all aspects of the business, from legislation, regulation and compliance news to analysis of industry trends, as well as expert advice on cultivation, marketing, financial topics, legal issues and more.

CBT focuses strictly on the business of legal cannabis for medical and recreational use and aims to provide timely information—through its website, e-newsletter, mobile app, print magazine and annual conference—to help the reader make timely, informed decisions to help them run their businesses better and more profitably. In 2018, Cannabis Business Times was named Magazine of the Year by the American Society of Business Publication Editors.

Michigan Governor Signs Legislation to Automatically Expunge Cannabis-Related Convictions

Michigan Gov. Gretchen Whitmer signed multiple “clean slate” bills into law Oct. 12 that will automatically expunge criminal records for those convicted of certain cannabis-related offenses, according to a FOX 2 Detroit report.

The new law will automatically clear the records of those convicted of cannabis-related offenses that would not have been considered a crime after Dec. 6, 2018, when Michigan legalized adult-use cannabis, the news outlet reported.

The law does not apply to felony convictions that carried a sentence of 10 years or more, according to FOX 2 Detroit.

RELATED: Michigan Lawmakers Approve Legislation to Automatically Expunge Cannabis-Related Convictions

Michigan Lt. Gov. Garlin Gilchrist said during the signing that cannabis prohibition has disproportionately impacted people of color, and that the new law will create opportunity for many who have been burdened with past cannabis-related convictions, FOX 2 Detroit reported.

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Congress of Colombia Advances Two Bills to Regulate Adult-Use Cannabis

Colombia’s legislature is discussing several initiatives that seek to regulate production and consumption of cannabis for recreational purposes among adults.

On Sept. 16, the first committee of the Lower House approved the first debate with a narrow vote of 18-17, allowing the first bill to move forward to the plenary of the Lower House.

Separately, a group of 38 lawmakers of the opposition and the center-right parties led by Sens. Gustavo Bolivar and Luis Fernando Velasco submitted a second congressional bill that aims to regulate marijuana production and consumption, a move that proves Colombia more than ever before is ready to debate initiatives that would end the so-called war on drugs and seek effective solutions to drug trafficking.

“There is a high chance that the bill could be approved in Congress because Colombia has advanced strongly on defending the rights of individuals, which explain why during the first debate even lawmakers of right-wing fractions voted in favor,” Velasco, a member of the liberal party who is leading the second initiative at the Senate, told Cannabis Business Times.

The first initiative at the Lower House led by opposition lawmaker Juan Carlos Lozada seeks to amend article 49 of the Colombian Constitution, which states “the carrying and consumption of narcotic or psychotropic substances is prohibited unless prescribed by a doctor.” If the bill gets approved, it would allow cannabis and its derivatives use for recreational purposes. It would also allow consumers to acquire cannabis at stores and lift a ban that today forces consumers to go to illegal outlets.

In other words, the initiative will support earlier rulings from the country’s highest court, the Constitutional Court, which recognizes the fundamental rights to equality and  free development of the personality.

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Soilless Substrate Researchers Seek Grower Input

A multi-disciplinary team of seven North American universities and federal laboratories, led by Dr. Jeb Fields at the Louisiana State University Agricultural Center, is seeking input from growers and growing media manufacturers/suppliers across the continent, representing multiple sectors and demographics, to identify needed innovations and constraints when producing specialty crops with soilless substrates.

The United States Department of Agriculture Specialty Crops Research Initiative awarded the researchers a planning grant, which the group plans to use to reimagine and redefine soilless substrate science to better meet the expanding range of crops and productions systems that are transitioning from traditional field soils into soilless substrates. As part of the planning grant, the researchers are seeking input from the industry to assess critical research and outreach needs that can be solved with the use of soilless substrates. 

The goal of the 5-minute survey is to determine the needs, cost restraints, material availability, and overall sustainability to ensure successful paths forward for each crop sector and within emerging markets, including cannabis and hemp. Growers who are interested in providing input can participate in the online survey

For projects updates and more information, visit http://www.soilleSSSubstrates.org

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GrowGeneration Acquires Phoenix-Based Hydroponics Depot

Denver, Colo., October 12, 2020 /PRNewswire/ -- PRESS RELEASE -- GrowGeneration Corp., a chain of specialty hydroponic and organic garden centers, has announced its acquisition of Hydroponics Depot, Phoenix's largest indoor and outdoor garden center. With the addition of Hydroponics Depot, GrowGen’s portfolio of hydroponic garden centers now includes 29 stores across 11 states.

GrowGen’s entry into the Arizona market – one of the largest medical cannabis markets in the country – comes as voters consider Prop. 207, which would legalize limited possession, cultivation and use of marijuana for adults ages 21 years or older. If approved, it’s estimated Arizona could become “close to a $2 billion market” with both recreational and medical marijuana.

“We’re excited to add Hydroponics Depot to our growing portfolio, with year-to-date sales in excess of $5 million and year-over-year growth at 50 percent,” said Tony Sullivan, GrowGen’s COO. “Importantly, it represents our first retail operation in Arizona, a key market in GrowGen’s growth plan. We see tremendous potential from both a medical and recreational standpoint.”

Arizona Market and Projections:

Arizona is one of the largest medical cannabis markets in the country, with projected 2020 sales of $770 million to $910 million, according to the new Marijuana Business Factbook.Retail sales of medical marijuana products in the state rose nearly 20% from January to May, according to the Arizona Department of Health Services. If Prop. 207 is approved, Arizona could become close to a $2 billion market with both recreational and medical cannabis.Marijuana Business Daily projects recreational sales in the first year could total $375 million to $400 million and reach $700 million to $760 million by 2024.

For more information about GrowGeneration, or to locate its stores, please visit www.growgeneration.com.

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Judge Sides with Cambridge, Mass., in Latest Ruling in Lawsuit Over City’s Cannabis Ordinance

A judge has sided with Cambridge, Mass., in the latest ruling in a lawsuit over the city’s cannabis ordinance, which bars existing medical cannabis operators from receiving adult-use cannabis licenses for two years in order to prioritize social equity applicants, according to a Cambridge Day report.

Revolutionary Clinics, a licensed medical cannabis dispensary in Cambridge, sued the city over the two-year licensing delay, and a judge sided with the company in January, ruling that Cambridge could not delay existing medical cannabis retailers from entering the adult-use market.

An appeals court then ruled in April that the city’s existing law was fair, Cambridge Day reported, which prompted Revolutionary Clinics to take its case back to the original judge in August. This time, the judge agreed with the appeals court decision, according to the news outlet.

Most recently, Revolutionary Clinics brought its case back to court with a mid-case order called an interlocutory decision, which was dismissed Oct. 8, Cambridge Day reported.

Associate Justice Diana Maldonado wrote in her ruling that she found “no abuse of discretion or error of law in the judge’s decision,” according to the news outlet, and that the previous judge’s motion was “thorough and thoughtful.”

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Young Voters Key for New Zealand’s Cannabis Legalization Referendum, According to New Poll

A new poll has revealed that young voters will be key for New Zealand’s upcoming cannabis legalization vote Oct. 17, according to Radio New Zealand.

A new Research New Zealand Poll has found that most in favor of the legalization referendum are 18- to 25-year-olds, the news outlet reported.

RELATED: New Campaign Launches in Support of New Zealand’s Cannabis Referendum

Forty-six percent of those polled said they will vote in favor of legalization, with 40% planning to vote against the referendum and the rest undecided or preferring not to say, according to RNZ.

“It's going to come down to getting those younger voters, who traditionally don’t vote in general elections, to actually turn up to the polling booth and vote because they are the people who are most in support of the legislation in comparison to older voters,” Research New Zealand Managing Partner Emanuel Kalafatelis told the news outlet. “If they don't turn up then this isn’t going to get over the line."

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CSU Pueblo Receives $275,000 Grant from USDA to Develop Hemp Education Program

The USDA’s National Institute of Food and Agriculture program has granted Colorado State University Pueblo $275,000 to develop its Industrial Hemp Education, Agriculture and Research (InHEAR) program, according to The Pueblo Chieftain.

CSU Pueblo started offering a Bachelor of Science in Cannabis Biology and Chemistry degree this fall, and the grant will allow the school to expand this degree to include hemp agriculture beginning in the fall of 2021, according to the news outlet.

The InHEAR program will also complement CSU Pueblo’s Institute of Cannabis Research, which was created earlier this year and will provide opportunities for hands-on learning.

School officials told The Pueblo Chieftain that the program will support the future careers of students, as well as the economic development within Pueblo and the rest of the state, as industrial hemp agriculture continues to expand after the passage of the 2018 Farm Bill.

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Need to Know: Sun+Earth Certification

While official U.S. Department of Agriculture (USDA) organic designation is still out of reach for medical and adult-use cannabis due to their federally illegal status, a new swath of regenerative cannabis standards have been created to fill in the gaps. One of those programs is Sun+Earth, which bases its certification standards on three main pillars: earth care and cultivation, which requires sun-grown cannabis to be cultivated with organic and regenerative practices that build soil quality; human empowerment, which requires farms to treat workers fairly; and community engagement, which requires farms to be involved in and give back to their communities. “Building soil has been seen as a vital activity of an organic farm, yet a truly regenerative farm also realizes building community is just as essential,” Sun+Earth says on its website.

Its rigorous standard containing nearly 60 requirements has quickly caught the attention of hemp and cannabis operations across the U.S. Since its official launch on Earth Day of 2019, Sun+Earth has certified 35 adult-use cannabis farms, five hemp farms and three cannabis processors.

Here, Sun+Earth Executive Director Andrew Black discusses the group’s origins, the work behind the farms that have received certification and more.

Hemp Grower: Can you start off by giving me a bit of background on how this certification was developed?

AB: There had been some other cannabis certifications that mirror USDA organic certification—one of them was one that I created called Certified Kind, which is still in operation, but it certifies outdoor, greenhouse and indoor. So, there was this desire to create a certification program for outdoor-grown cannabis that was grown using the most environmentally friendly practices possible, and also something that was sort of like fair trade.

We also recognized when we started developing the standard that community engagement was really important to the cannabis farms that helped us develop the standard, and that community has always been a big part of the legacy of the farmers in the areas that we worked in. … So, wanted a standard where if you were participating, you couldn't just be this soulless corporation that didn't care about the community … Like, let's say you have a big company come in and set up a farm, but not really engage or uplift the local community. We were trying to make that impossible by creating a community engagement piece to Sun+Earth.

HG: Can you give me an overview of the certification process and how long it typically takes?

AB: Basically, someone that's interested in receiving the certification will contact us, and we have a questionnaire just to screen out people. One of the requirements is that they have a permit from their state to be growing cannabis or industrial hemp, and then if they do, we'll send them an application. The application also doubles as their Sun+Earth farm plan. They answer a series of questions and give us information about their farming practices and also how they treat their workers, how much they pay their workers, whether they have contracts with their workers or not, plus what they're doing for community engagement and uplifting their local community.

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Maine Launches Adult-Use Cannabis Sales, Vermont Legalizes Regulated Cannabis Market: Week in Review

This week, Maine launched its long-awaited adult-use cannabis market, with a handful of dispensaries opening Oct. 9 for adult-use sales. Elsewhere, in Vermont, the governor allowed legislation to become law that will establish rules and regulations to oversee the commercial production and sale of adult-use cannabis.

Here, we’ve rounded up the 10 headlines you need to know before this week is over.

West Virginia: The Office of Medical Cannabis has issued 10 medical cannabis cultivation licenses, with plans to score processor and dispensary applications next. Regulators aim to launch medical cannabis sales in the spring of 2021. Read moreVirginia: The state legislature has passed legislation that would prohibit police stops based on cannabis odor, sending the bill to Gov. Ralph Northam. Senate Bill 5029 and House Bill 5058 cleared the legislature in a special legislative session, and would limit the ability of law enforcement to conduct warrantless searches solely based on the smell of cannabis. Read moreNevada: Gov. Steve Sisolak has made the final two appointments to the state’s five-member Cannabis Compliance Board, Bryan Young, a Reno-based physician, and Riana Durrett, the former director of the Nevada Dispensary Association. The new members join former Nevada Supreme Court Chief Justice Michael Douglas, former Nevada Gaming Control Board Chairman Dennis Neilander and Las Vegas banking executive Jerrie Merrit on the board, which oversees the regulation of the state’s cannabis industry. Read moreIllinois: Three finalists included in a lottery to win Illinois’ cannabis dispensary licenses have filed a lawsuit over the state’s decision to give applicants a second chance to qualify for the lottery. SB IL, Vertical Management and GRI Holdings IL, which all received perfect scores on their applications, are asking the Illinois Supreme Court to award the licenses without the recent changes to the process, which were announced late last month. Read moreAnother group of social equity license applicants in Illinois have filed a separate lawsuit in Cook County Circuit Court against the Illinois Department of Financial and Professional Regulation (IDFPR) and Bret Bender, the deputy director of its Cannabis Control Section, for disqualifying their applications and not providing them the opportunity to participate in a process through which certain applicants can amend their applications and challenge their scores. The applicants, many of them veterans, are also asking the court to subpoena accounting firm KPMG to share details of its scoring process. Read moreMichigan: The Michigan Regulatory Agency announced this week that it will allow cannabis businesses to apply for standalone adult-use licenses starting March 1, 2021, in an effort to combat the state’s illicit market. Regulators are removing a requirement that class B and C cultivators, as well as labs, processors, transporters and retailers, in the adult-use market must first hold a medical cannabis license, the news outlet reported, which translates to lower application and license fees for businesses that do not want to participate in the medical market. Read moreCalifornia: The Los Angeles Department of Cannabis Regulation will begin accepting applications for additional cannabis licenses on Tuesday, Oct. 20. Regulators will accept applications for delivery, distribution, non-volatile manufacturing and testing labs, with delivery licenses available only to the city’s previously verified Social Equity Applicants. Read moreVermont: Gov. Phil Scott announced this week that he would permit legislation, Senate Bill 54, to become law to establish rules and regulations overseeing the commercial production and retail sale of adult-use cannabis. Vermont lawmakers depenalized the possession and cultivation of small quantities of marijuana by adults in 2018, but that law did not legalize any commercial activities involving either cannabis production or sales. Read moreFlorida: The Florida Supreme Court heard a second round of arguments this week in a case that challenges the constitutionality of the state’s 2017 medical cannabis law. Tampa-based Florigrown LLC filed the lawsuit three years ago, alleging that the law improperly implemented a 2016 constitutional amendment that broadly legalized medical cannabis in the state, particularly when it comes to a requirement that all medical cannabis operators be vertically integrated. Read moreMaine: Maine launched its long-awaited adult-use cannabis market this week, with a handful of dispensaries opening for adult-use sales Oct. 9. Cannabis Business Times and Cannabis Dispensary spoke with Theory Wellness, one of the dispensaries that launched sales on opening day, to find out more about its plans to serve the market. Read more

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Cannabis Trade Federation Addresses Diversity, Equity, Inclusion with New Policy

In an Oct. 8 Zoom call, the Cannabis Trade Federation’s (CTF) Diversity, Equity, and Inclusion (DEI) Task Force announced two new programs to work toward ending inequities for minorities in the cannabis industry: a Policy Platform and Member Assessment Tool.

“The Policy Platform offers CTF members an expansive list of recommendations around economic development and workforce, ownership, government policy, community partnerships and criminal-justice reform,” Linda Mercado Greene, chair of the DEI Task Force and owner and CEO of Anacostia Organics, said during the call.

She continued: “The Member Assessment Tool will serve as a benchmarking scorecard mechanism to measure the progress of the DEI practices for CTF members, and to act as an accountability and transparency tool. These will be in the areas of recruitment and retention, procurement and business ventures, governance and philanthropy, and community engagement.”

Every CTF member will be required to participate in both programs, Greene added. CTF’s 27-member DEI Task Force, created in May 2019, worked on the proposals, and CTF’s board of directors approved them in August, according to a press release.

RELATED: Cannabis Trade Federation Launches Diversity, Equity and Inclusion Task Force

In 2019, the DEI Task Force, whose membership includes Karen Boykin-Towns and Derrick Johnson of the NAACP, former NBA player and coach Isiah Thomas and 1906 co-founder and CEO Peter Barsoom, met in Denver for three days, Greene said. The Task Force’s members, not all of whom have worked in the cannabis industry, toured cultivation facilities and dispensaries. Since then, Task Force members have held bimonthly calls and kept up email exchanges.

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Theory Wellness Launches Adult-Use Cannabis Sales in Maine with Lessons Learned from the Massachusetts Market

Theory Wellness is one of a handful of dispensaries in Maine that will be open for adult-use cannabis sales Oct. 9, and the company plans to apply lessons learned as an established operator in Massachusetts’ medical and adult-use markets to find success in the country’s newest recreational cannabis market.

The company is vertically integrated in Maine with cultivation and manufacturing operations in Waterville, in addition to its retail location in South Portland.

CEO Brandon Pollock said the last few months have been “a bit of a blur” as Theory Wellness worked to get its facilities up and running.

“We’ve been trying to hire, build out and get products ready as quickly as possible,” he said. “We weren’t given very much notice. We got our final licenses in early September, and with the expected open date in October, it gave us about a month to prepare. We’re still doing last-minute preparations, but we’re feeling good about it.”

Photos courtesy of Theory Wellness
The entrance of Theory Wellness' South Portland dispensary

With only a few stores opening on the first day of sales, and with the ongoing COVID-19 pandemic in mind, Theory Wellness is encouraging customers to make appointments to visit the dispensary, as well as pre-order products as much as possible in an effort to mitigate crowds.


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Maine Cannabis Businesses Reflect on Their Decision to Delay Launch into State’s Adult-Use Market

Maine’s long-awaited adult-use cannabis market opens Oct. 9, and while a handful of retailers plan to launch sales on opening day, many more have opted to delay their launch into the market to finalize license approvals and ensure a great customer experience when they do open their doors.

Ramping Up Operations

AAA Pharmaceutical Alternatives, a licensed medical cannabis caregiver serving patients in central Maine from its Manchester dispensary, is awaiting final approval on its conditional adult-use cultivation, product manufacturing and retail licenses. Founder Aaron “Roy” Scalia expects to launch his expanded grow operation at the end of November or the beginning of December, with the adult-use store opening next spring, and he is perfectly fine with this timing.

“Historically, this is a time of the year when sales go down,” he says. “You don’t have a lot of vacation money flooding into the state this time of year. Everyone is getting ready for winter and hunkering down.”

Between the slower time of year and the ongoing COVID-19 pandemic, Scalia predicts a slow start for Maine’s adult-use cannabis market.

RELATED: Passion for Medical Cannabis Fuels AAA Pharmaceutical Alternatives’ Transition to Maine’s Adult-Use Market: The Starting Line


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Florida Supreme Court Hears Second Round of Arguments in Medical Cannabis Case

The Florida Supreme Court heard a second round of arguments Oct. 7 in a case that challenges the constitutionality of the state’s 2017 medical cannabis law, according to the Miami Herald.

Tampa-based Florigrown LLC filed the lawsuit three years ago, alleging that the law improperly implemented a 2016 constitutional amendment that broadly legalized medical cannabis in the state, particularly when it comes to a requirement that all medical cannabis operators be vertically integrated.

Lower courts have sided with Florigrown in the case, and the new round of arguments come after Gov. Ron DeSantis’ administration filed an appeal when an appellate court upheld a temporary injunction issued by Leon County Circuit Judge Charles Dodson, who ruled that Florida’s medical cannabis law conflicts with the constitutional amendment, according to the Miami Herald.

The Florida Supreme Court heard the case in May, but ordered a second round of arguments in July. The new hearing focused on whether the state’s medical cannabis law is an unconstitutional “special law,” which is generally intended to benefit specific entities and is prohibited under Florida law.

Judges appeared split on the law’s constitutionality during the Oct. 7 hearing, the Miami Herald reported.

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SKYMINT BRANDS, Formerly Green Peak Innovations, Joins Forces with DNA Genetics to Bring Flower Strains to Michigan with the Launch of SKYMINT X DNA GENETICS

DIMONDALE, Mich., Oct. 8, 2020 /PRNewswire/ -- PRESS RELEASE -- SKYMINT BRANDS, Michigan's largest vertically integrated cannabis company formerly known as Green Peak Innovations, has announced a landmark collaboration with DNA Genetics, the globally acclaimed brand whose proprietary genetics have won more than 200 national and international best-in-class awards.

"SKYMINT BRANDS and DNA Genetics share a similar brand ethos in that we are both on a mission to provide cannabis enthusiasts with the highest quality flower possible," says SKYMINT BRANDS CEO Jeff Radway. "All flower is not created equal, and DNA Genetics knows this better than anyone else, which is why our SKYMINT X DNA GENETICS collaboration truly sets a high bar in Michigan."

Launching tomorrow, Oct. 9, at all seven recreational SKYMINT locations throughout the state of Michigan, as well as select retail partners, SKYMINT X DNA GENETICS features a premium collection of seven of the most globally awarded and sought-after flower strains, including Bakers Delight and Ztrawberriez, as well as:

Clementine ⅛ Flower $70

1st Place, High Times Cannabis Cup 20191st Place, 710 Degree Cup

Kosher Kush ⅛ Flower $70

1st Place, High Times Cannabis Cup 2010Top 10 Strain of the Year, High Times Cannabis Cup 20111st Place Milano Secret Cup 2018People's Choice, Cannabis Cup Brazil 2016

LA Confidential ⅛ Flower $70

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Pabst Blue Ribbon Cannabis Infused Seltzer Debuts in California

Los Angeles, CA -- PRESS RELEASE -- Pabst Labs, a newly formed licensed cannabis company, has revealed the initial launch of Pabst Blue Ribbon Cannabis Infused Seltzer. The famed Blue Ribbon, synonymous with good times for over 175 years, will now adorn the can of a non-alcoholic THC infused seltzer developed by Pabst Labs.

Pabst Labs was founded by a group of cannabis beverage experts and former Pabst Brewing Company employees who were granted the rights to create a line of cannabis infused drinks under the Pabst Blue Ribbon Name. Pabst Labs is responsible for the production, marketing and sales of the new drink.

“Pabst Blue Ribbon has an incredibly loyal and passionate customer base who are open to change and embracing new ideas. We’ve spent a long time creating a quality product for both new and experienced users, and believe the entry of an established brand can help kick-start the cannabis drinks category,” said Mark Faicol, Pabst Labs Brand Manager.

Pabst Blue Ribbon Cannabis Infused Seltzer marks a major milestone for the burgeoning cannabis drinks industry, and an awesome way for lovers of Pabst Blue Ribbon to experiment with a new kind of buzz. The initial test launch will see Pabst Blue Ribbon Cannabis Infused Seltzer available for customers in a select group of California dispensaries and direct to California consumers via shop.PabstLabs.com.

Pabst Labs is thrilled and honored to develop a product that’s fit to use the famed Pabst Blue Ribbon name. Pabst Blue Ribbon is one of America’s most beloved brands, a champion of the creative community and lifestyle, and recently has been innovating beyond beer, with the launches of Hard Coffee, Hard Tea and Harder Seltzer.

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Vermont Becomes Eleventh State to Legalize Adult-Use Marijuana Sales

Montpelier, VT, PRESS RELEASE: Republican Governor Phil Scott today announced that he would permit legislation, Senate Bill 54, to become law establishing rules and regulations overseeing the commercial production and retail sale of marijuana to adults. The measure will become law absent the Governor’s signature.

Vermont lawmakers depenalized the possession and cultivation of small quantities of marijuana by adults in 2018, but that law did not legalize any commercial activities involving either cannabis production or sales. Ten states currently regulate adult-use marijuana sales.

NORML State Policies Coordinator Carly Wolf said: “Ten of the eleven states that have legalized adult-use marijuana possession have also wisely regulated the retail cannabis market; until today, Vermont had been the sole exception.

“This comprehensive legislation was debated and amended over a period of several months by members of both chambers, and it is supported by a majority of Vermont voters. Senate Bill 54 represents an opportunity to bring common-sense controls to the adult-use marijuana marketplace, which is currently unregulated, unlicensed, and untaxed. While the law, as written, is not perfect, we are confident that lawmakers will continue to further amend these proposed rules and regulations accordingly in a manner that both prioritizes public safety as well as the needs of entrepreneurs looking to enter into this space. This is a victory for those who wish to disrupt the illicit marketplace and move forward with an above-ground, regulated cannabis marketplace.”

Senate Bill 54 establishes rules and taxation rates governing the licensed commercial production and sale of cannabis and cannabis products to adults. Under the plan, retail products would be subject to a 14 percent excise tax, in addition to the state’s six percent general sales tax. The potency of herbal cannabis products will be capped at 30 percent THC while concentrates will be limited to no more than 60 percent THC. Products cannot be packaged in a manner that appears appealing to children. Prior to the operation of any licensed cannabis facility, a municipality will need to hold a vote to in favor of permitting commercial activities within their locality.

The new law takes effect on October 1, 2020. However, regulators will not begin licensing cannabis-related businesses and activities until the spring of 2022.

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Following End of Caregiver Sourcing to Michigan Cannabis Businesses, Redbud Roots Works to Address Supply Issues

For some people in the Midwest, the close of September signaled not only the changing of the leaves and an increase in pumpkin-flavored and -scented product availability, but the end of an era for cannabis. Michigan’s caregivers are no longer sourcing dispensaries with product.

“There is a massive shortage on distillate in the state of Michigan, particularly in light of the phaseout of caregivers,” said Alex Leonowicz, COO and general counsel of Redbud Roots, a vertically integrated cannabis company based in Buchanan, Mich. “There have been rumors of distillate pricing reaching as high as [$25,000 to $30,000] for a liter. Likewise, vape cartridge demand has skyrocketed.”

During the March through September phase-out of caregiver sourcing for medical dispensaries, Leonowicz said, dispensaries and customers had already been feeling the effects. (In April, the Michigan Marijuana Regulatory Agency cut off caregiver sourcing for adult-use dispensaries.)

Past experiences foreshadowed growing pains that would come with phasing the model out. Redbud, established in 2017, was one of the first several commercial growers and manufacturers to supply cannabis product into the retail market alongside caregivers, Leonowicz said.

“We couldn't even come close to supplying all the stores,” he said, explaining that the state had previously warned of a phaseout. “So, guys rise up, and they're like, ‘Wait, I can't buy it from my caregiver; you [the state] are shutting those guys down. Yet, your new model isn't ramped up enough. So, you're leaving people that utilize the plant for truly medicinal purposes without medicine.’ That's what allowed them to continue to supply into the commercial model for so long.”

Now, in a caregiver-less climate, Redbud is working to help fill the supply void.


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Disqualified Social Equity Applicants Sue IDFPR

A group of social equity license applicants in Illinois have filed a lawsuit in Cook County Circuit Court against the Illinois Department of Financial and Professional Regulation (IDFPR) and Bret Bender, the deputy director of its Cannabis Control Section, for disqualifying their applications and not providing them the opportunity to participate in a process through which certain applicants can amend their applications and challenge their scores.

The plaintiffs are “Black, Latino, and veteran business owners,” according to a press release from the Coalition for Social Equity Justice in Cannabis. According to the complaint, various plaintiffs have served in the U.S. Army, Marines and National Guard and lived in Illinois’ “Disproportionately Impacted Areas.”

 

“We deserve to know why they failed to score our applications,” said Eva Hernandez, a veteran and social equity applicant, in a prepared statement from the release. “We put in the work, paid the fees, and responded to their requests for information. We deserve the same consideration and the same opportunity as everyone else.”

The complaint in the lawsuit was filed Oct. 5, the same day another lawsuit was filed in the Illinois Supreme Court. (That one was brought forth by finalists in Illinois’ license lottery who claimed Gov. J.B. Pritzker could not offer previously disqualified applicants a second chance.)

On Oct. 6, the plaintiffs in the circuit court lawsuit also petitioned for a “temporary restraining order, motion for preliminary injunction and motion for expedited discovery,” according to court records. They requested that the court subpoena KPMG, the Big Four accounting firm that scored the applications, to answer questions and provide insight into the scoring process. The plaintiffs asked about, among other things, the “basis of disqualification” for each of them, a description of “the process for issuing deficiency notices” (which they asserted in the complaint were “flawed and inconsistent”) and an identification of each person who knows how KPMG’s portal for applications works.

“IDFPR has acknowledged that there were problems with the review and scoring process,” Claudette Miller, an attorney for the plaintiffs, said in the press release. “These plaintiffs did respond on time to deficiency notices, so that cannot be the reason they were disqualified. The Department is committed to remedying scoring mistakes, but applicants who never even got a chance to be scored are being left behind. All we are asking for is an equal opportunity for everyone who followed the rules.”

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Los Angeles Will Begin Accepting Applications for Additional Cannabis Licenses Oct. 20

The Los Angeles Department of Cannabis Regulation (DCR) will begin accepting applications for additional cannabis licenses on Tuesday, Oct. 20 at 2 p.m., according to a recent public notice.

Regulators will accept applications for delivery, distribution, non-volatile manufacturing and testing labs, with delivery licenses available only to the city’s previously verified Social Equity Applicants.

Applicants must complete the Pre-Application Review process, and once they are deemed eligible for further processing for one or more license types, they can complete the Temporary Approval process.

The Pre-Application Review and Temporary Approval processes can be completed on DCR’s website ahead of Oct. 20.

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Illinois Adult-Use Cannabis Sales Hit New Record in September

Illinois’ adult-use cannabis sales hit a new record in September, with the state’s dispensaries reporting nearly $68 million in sales last month, according to a Herald & Review report.

September’s sales surpass August’s by nearly $4 million and includes more than 1.4 million items sold, which is also a new record since Illinois launched adult-use sales in January, the news outlet reported.

There are currently 67 licensed adult-use dispensaries in the state, according to Herald & Review, and sales have nearly doubled since the beginning of the year.

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